Caporegime
That's a take and a half.
This thread is pretty much the evidence needed to explain why society will never improve
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
That's a take and a half.
This thread is pretty much the evidence needed to explain why society will never improve
Associate
I cant believe how rates have gone up in the last few weeks. We're on a fix until 31st December 2023 but could go onto a new fix with our existing lender from 30th June. A few weeks ago we were looking at going from our current 2.04% to about 3.89% - a jump but nothing too bad. Fast forward a few weeks and its 4.64%. I wouldn't be surprised if its above 5% by the end of the month. Our mortgage payment will be going up nearly £300. Its so frustrating, I really don't want to fix at these rates for 5 more years but will it come down? Who Knows?
Its not the first time we have lost the mortgage lottery. Back in 2009 we bought our first property and weeks later interest rates crashed to 0.5%. We were stuck on a 5.99% fix for 5 years.
Its not the first time we have lost the mortgage lottery. Back in 2009 we bought our first property and weeks later interest rates crashed to 0.5%. We were stuck on a 5.99% fix for 5 years.
5.99 to 1.8% or so, ouch.. surely paying the early redemption charge would have helped in that case. Or, I would have pleaded with the bank since it was only a few weeks.
Soldato
Thanks.
Well to put it another way, our "usual" volume of applications, well we can handle about 120 a day, but usually between 50-100, a day.
Average loan size, what, 200k? You can work out the sums of money involved.
Today, 6.
Friday 4.
Etc
And it's been going on like that since, hmmmm, mid November last year.
Soldato
Nonsense.
A house isn't a gamble or an investment and never should be.
It is nothing to do with making better choices, if the market rates treble in only 6 months through nothing you could do anything about.
Man of Honour
At least 20 years until we see under 4.5% lads, better get used to this new normal. If anyone needs tickets to the doomtrain pls form an orderly queue, there are limited seats so don't delay.
Do you work for a building society or is it an intermediary / mortgage advisor?
Soldato
Mortgage lender.
We are not a building society though, we trade/mainly sell mortgage backed securities.
Soldato
What % rate do you think you should be given, and by whom?
Soldato
- Joined
- 21 Jan 2010
- Posts
- 3,682
That is a bonkers drop in activity. I guessed sales might have fallen, but not by that margin.
Is that new buyer mortgages, or does it include remortgages?
That doesn't sound good at all.
Caporegime
I think property needs a rethink apart from an arbitrary rate being set.
But I'm about society, and you're a Tory so we likely won't agree.
Soldato
Soldato
I think its more about stability. At the point you buy a house (a main house, not an investment property, buy to let or holiday home), you are assessed and you take account of term, repayments and affordability at that point under different scenarios.
Is it then fair for very short term external circumstances to ruin a person? I don't think so.
So fundamental changes are required. How about full term fixed rates that allow a person to still move house? Rates that reflect the risk of an individual not the whims of markets or the BoE that no one has any control over.
The question I would put back to you is why should individuals bear the risk of national market/policy failures? All any of us can do is try to be financially responsible by controlling our own stuff, making sure we're employed, not wasting money etc. We can do all that, yet get ruined anyway by poor national policy or behaviour of markets.
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Young un's just need to cut out the frothy coffees, netflix and avocado toast
Caporegime
An old work friend bought their first house in 09 and was in negative equity for nearly a decade. We bought a year later at 3% and spent a lot less. It is all about luck in the end unless you are mega rich and a house purchase is pocket change.
Anyone getting ruined by this generally would have made poor decisions. That is also in your control and makes more difference than the other stuff you can do.
Soldato
That is simply nonsense.
What do you class as poor decisions? Divorce at 40, is that a poor decision on the part of an individual? Shouldn't have married the abusive partner 20 years before when you thought everything was good?
Many people, through no fault of their own, will experience life changing circumstances. If you're 20, perhaps you have time to have another go. If you're 40-60, you don't.
What if a person went through all the above, yet managed to save a deposit, whilst renting, against massively rising house prices and get back on the ladder, then to have rates treble by the time he exits the mortgage term? You think that is something that person could control?
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What difference do any of those make?
- It was pretty obvious rates wouldn't stay that low. Should have expected increases in future. Maybe not to 5 or 6% but to 4% or so as banks test for. 5 or 6% might be tough and unpleasant to deal with, but not ruinous.
- If affordability if rates go up was a serious concern, should have locked in for longer.
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Caporegime
While being told they have to support said businesses so local economy is strong
And not to ask to be able to get a pay rise